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Today Universal Detection Technology (OTC:UNDT) will get its first promotion for this month. New promoting e-mails have been sent yesterday evening to make the share price surge again today. If the company sticks to its established PR strategy, maybe news is also to come out.

UNDT closed Friday session within its usual trading channel at $0.0005 for a share. The increase in the closing price was 25% and the volume of traded shares was about half the average with 34.85 million traded shares for the day. Today the stock might experience another breakout like that of the middle of last month, as a new promotion is taking place and the company might be ready with its next optimistic press release.

The new promotional program that started just yesterday evening and will run the whole week. It has been compensated with the modest amount of $5,000 in cash. The promoters promise huge volume in today’s session that could easily send the stock price flying. For a sub-penny of that kind, such a scenario is a completely realistic one, though as the action from the middle of February shows it is short-lived as well. Moreover, as the promotions in February were worth at least $17.500, if an explosion happens today it might be of a much smaller scale.

On the day of its last stock promotion Universal Detection Technology issued also its latest press release. It reported that the company has entered into a distribution agreement with Ensoul Technology, which would act as exclusive distributor for UNDT biological and chemical weapons detection equipment in China. As previously reported, UNDT has often in the past promised a sales boost up for its business, but has yet not managed to build the fundamentals for its market valuation to leave the sub-penny levels.

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Last Friday, the stock of St. Eugene Mining Corporation Limited (CVE:SEM), (PINK:STEUF) impressed many investors on the TSX Venture Exchange (CVE) with its large turnover. This is the second huge volume spike after the one from mid-December.

Similar to the volume rise from two months ago, the present surge also came after announcing the resource estimate results from the company’s Amisk gold project. The estimates were provided by St. Eugene’s joint venture partner – Claude Resources Inc.

Unlike the earlier surge, the current one is not accompanied by a huge jump in the share price. On Friday, SEM moved only 5.6% up; in December, it had doubled its value.

There is another difference too – the mid-December volume of 14.9M shares was a record for St. Eugene on the CVE. Last session’s turnover of 7.4M was twice less that figure, but still exceeded eight times the average for the company. SEM was defined by some analysts as one of Friday’s small-cap breakout stocks on the Canadian Exchange.

Unfortunately, the fundamentals of St. Eugene do not seem steady enough and do not speak in favor of future run-up of the stock price. The financial state of the company looks quite feeble:

• The net loss for the third quarter of 2010 was almost $170K;

• At the end of last September St. Eugene recorded no more than $143K of working capital;

• As at Sep. 30, 2010, the average number of outstanding shares was 73M compared to 23.7M one year before that. It means increased dilution risk for shareholders.

Though the company completed a $4M private placement offering just before New Year, it will require more cash to manage its two key projects. Besides, they are still not in the production phase, and it is a mystery how profitable they would be once they reach it.

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American Manganese Inc. (CVE:AMY) (PINK:AMYZF) had a few recent bumps on the prevailing uptrend that might be interrupted due to the conditions of the recently done funds raising.

Friday’s trading volume of 648 thousand was well above the average of 179 thousand. Even though the selling pressure remains comparatively weak, strong trading volume on a red day points out profit taking.

The most noticeable point of resistance above the current price is at $0.485, which was hit in March 2010. It is another 31% up from the current share price, however, the fundamentals might not support such a value and lead to an earlier reversal. The current market cap of over $25 million adds a significant premium to the underlying net tangible worth, which is just over $6 million, including the most recent funding.

American Manganese announced a non-brokered private placement of $2.1 million last week. Units were issued at a price of 30 cent per piece. Related warrants are convertible at 40 cents and are valid for two years. These price levels add pressure to the current market price. The inflated value might lead to sudden collapses if private investors decide to take their easy profits.

Another thing influencing AMY share price is the outstanding letter of intent. Rara Terra Capital Corp. has a LOI with American Manganese to acquire up to 60% of its interest in Lonnie niobium and rare earth property in British Columbia. The transaction still needs the approval of the TSX Venture Exchange.

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It looks like the shares of Genmed Holdings Corp. (OTC:GENM) will have a hot week at hand. A paid promotional campaign for the stock began today, giving the shares an exceptional opportunity to repair their long-term oversold status and lack of any trading interest.

A stock promoter has sent today e-mail alerts to his subscribers, presenting the company as an established producer of generic medicine in Europe and as holding enormous potential due to its distribution licenses and competitive advantages. Unfortunately, it seems like it wasn’t love at first sight. For the paean of praise the promoter got a compensation of $75,000 in cash paid by a third party and the marketing campaign will run for five days starting today.

GENM stock looks like it could use some help in any case. The stock is highly illiquid and got the considerable volume of over 38,000 shares just in the last trading session on Friday. That volume did not move the price an inch upwards and the stock closed as usually at $0.37 for a share. Low liquidity and some bullish technical parameters could suggest that any additional demand could easily push GENM share price up without any concerns. However, even if GENM explodes today it is unlikely to stay up for long as the fundamentals of the company show that even the current stock price is by far too high.

Lastly the shares have been traded at an over 11,000 multiple to the company’s sales, the industry average being only about 8. Genmed’s business has negative tangible worth, and all the potential hiding in the “medical registration rights” valued at $5.6 million might take time and cost shareholder dilution until it gets realized.

Genmed’s latest 10-Q reveals meager revenues coming from consulting services, not from product sales, and the lower production and distribution costs stated as a competitive advantage in the promoter’s alert are also only positive projections. The management is still in the process of negotiating distribution agreements and sufficient cash to cover the short-term needs is also not available.

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American Diversified Holdings Corp. (PINK:ADHC) stock demonstrated yesterday that it can gap up more than one time on one and the same announced software development agreement. In addition, the stock became a real volume gainer on the market.

For a second time this month, ADHC announced yesterday to have signed a software development agreement with a San Diego based technology firm to create a medical mobile application platform. The share price formed yesterday a large gap up, closed the market with a doubled value at $0.0118 and surged up to $0.018 during the day. The real sensation was the trading volume, however, which reached 65.87 million shares and was the highest in the stock’s trading history.

The explanation for the huge volume are maybe the trading alerts in which ADHC stock was included yesterday. One of the promoters had previously received $20,000 from a third party for the advertising services. Otherwise, the fundamentals for such run-up are missing. The holding company has no SEC filings since 2006, but a quarter report for the three months ended October 2010 is available on the OTC markets homepage.

According to the report, ADHC has been so far doing research on new business opportunities and has no sales and no marketable products, the only thing pointing at some possible economic activity that could generate future income being the increased selling general and administrative expenses. They grew to over $429,000 from $11,200 in the same period last year.

Further, the company admits that its business has never been profitable and has lived on proceeds from the sale of stocks and loans. The current liquidity resources are maybe also adequate, given the lack of operations: $314 in cash and working capital deficiency of over $1.4 million.

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Zevotek, Inc. (OTC:ZVTK) is flicking up and down as traders remain indecisive about the stock value after the company rolled out several big announcements.

Another stock price stir was created by the recent news that the company will roll out an extensive TV advertising campaign for the ionic light bulbs. The ads should be aired more than 1,000 times in January 2011 and are expected to drive the sales up.

As always, the share price reaction looks premature considering the material changes have not occurred and the fundamentals remain troubled.

An earlier price rally has demonstrated the nature of news driven excitement, when the price swung wildly in the first days but the stock lost liquidity and depreciated shortly afterwards. The newest announcement carries little reason for appreciation and the price rally counts only on the excitement of day traders.

The previous price rally had more merit as it was induced by the announced acquisition of a water saving technology used in households and as presentations carried out the advertising of the company’s ionic light bulb product. [BANNER]

Despite the intentions to advertise the bulb, the price is mostly influenced by the underlying financials, which aren’t much impressive:

• no cash
• heavily leveraged balance sheet
• minuscule revenues to date
• continuing losses due to overwhelming expenses

The business won’t advance without additional funding, which in the penny stock industry usually comes with a high risk of dilution for shareholders.

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Cascadia Investments (PINK:CDIV) lost half of its value over Thursday’s trading session, but traders are looking for a possible bounce to follow. The trading volume faded by the end of the day though, which means the recovery is likely to be slow.

The pink sheets listed internet gaming and social media business has been on the traders’ radars for the whole 2010. Some press releases from August and September pointed to Cascadia releasing new games for iPad and those games appeared to have gained extraordinary popularity. This achievement is yet to be reflected on the pages of their financial reports.[BANNER]

The company had little revenue by the end of the second quarter this year, but managed to retain a positive cash flow due to fund raising. The company reports no share dilution to have taken place as well.

Over 207 million of outstanding shares are still a huge drawback for the company stock price. They appear to be moving forward with the business and retaining a considerably healthy balance sheet despite the losses. The market cap is going over the top with only slight increases in the share price, and the fundamentals have no way of supporting the spurts. The usually low liquidity also brings in large percentage moves, which hurt the short term players.

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After the latest operational update from April this year could not reverse the downtrend of Searchlight Minerals Corp. (OTC:SRCH) stock, some investor alerts and some research coverage seem to have improved investor expectations.

Although SRCH still has no economic operations after ten years of exploration and of searching the right business model, their stock price is surging up over the last month. The only news from the company since April has been that one of its directors will now sell his holding at current market prices. It is not known if that has encouraged traders, but three weeks after the relevant 8-k, SRCH added yesterday another 22.55% and closed at $1.25 for a share.

The technical indicators suggest that the rise can persist, and the lack of resistances back to March are also a positive signal. But the suddenly improved popularity of SRCH seems weird in any case, as no improvement in the fundamentals has been made. At the time when SRCH gaining period started, two well-known stock promoting websites alerted SRCH’s price momentum to traders. Subsequently, the initiated coverage by the “independent” researcher Emerging Stock Report was announced.

Since that time, SRCH stock has gained 318% in market value. The latest press release by the company was made in April and announced that the company was at that time about to commence operations on its Clarkdale Slag Project in north-central Arizona. Though, that does not sound plausible. According to the latest 10-Q from the middle of August, the company has still not completed all the feasibility studies on that project and is still not sure how exactly the operations will be conducted.

Final results are supposed to come out at the end of October.

SRCH has no revenues from operations since its inception ten years ago and has accumulated an operational loss of over $25 million, whereby the company has had more general and administrative costs than it has spent on mineral exploration and evaluation. The raising of equity capital has been more successful, however. SRCH has sold stocks for nearly $60 million since the company was created, the number of common shares currently outstanding being 118.81 million.

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Sunvalley Solar Inc. (OTC:SSOL) is breaking out on heavy volume in continuation of the previous day’s rally. The stock was recently recommended by KillerPennyStock.com newsletter service and had a major contract revealed early this morning.

SSOL has been picked up by a bunch of other newsletters as well, building up buying pressure since last Thursday. Since the buyers were further stimulated by the company’s news, right now it could continue the appreciation until the end of the week.[BANNER]

Recommendations from newsletters usually create short-term buying pressure – many traders suddenly want to have the stock and the price rises as they are trying to get it. Since the price of the stock goes up ignoring the fundamentals, it is likely to go down fast when there are no more new buyers pouring in.

News work like an accelerator in such cases, as they add to the hype and extend the opportunities for profits. This is exactly what is happening with Sunvalley Solar right now. The golden rule is to look out for the first red day on these extensive rallies, which usually indicates the end of the fun.

Sunvalley Solar Inc. is a new play in the penny stock world, coming in after the company merged with their wholly-owned subsidiary in July 2010.

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